Mwalimu Sacco enters mortgage and insurance business
04th Apr 2011 00:00:00 GMT +0300
BY JOSEPHAT SIROR
Teachers Savings and Credit society, Mwalimu Sacco, is set to introduce mortgage and insurance services. The Sacco said it has already identified a financial institution that will facilitate the introduction of the new products. "We will be binding ourselves with a financial institution which we will soon sign a Memorandum of Understanding (MoU) with. We have already identified one," said Mr Shem Motuka, Sacco’s National Chairman. He noted that discussions are at an advanced stage with the financier, adding the services will be rolled out by the end of the year. "Our discussions have been on but by the end year (2011), our new products will be in the market," said Mr Motuka during the launch of M-Sacco money transfer facility in Nairobi. The chairman confirmed to an annual delegates forum that the diversification strategy followed persistent requests from the members.
The introduction of new products targets more than 40,000 members of the Sacco. During the weekends’ forum, Sacco announced an increase in turnover of over Sh2.3 billion,
a growth attributed
to to the swelling number of new members and loans portfolio.
"Our growth in shares and turn over has been enabled by new members and good weather conditions," said Mr Motuka. Ministry of Co-operative Development Permanent Secretary, Mr Seno Nyakenyanya lauded the Sacco, but warned over misconduct of the Sacco Boards. "Governance has been a challenge to co-operative sector. I would like to warn such Boards that they have no business in leadership of the Saccos," said the PS in a speech on behalf of the Co-operative Minister, Mr Joseph Nyagah.
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